26 U.S. Code § 1032 - Exchange of stock for property

No gain or loss shall be recognized to a corporation on the receipt of money or other property in exchange for stock (including treasury stock) of such corporation. No gain or loss shall be recognized by a corporation with respect to any lapse or acquisition of an option, or with respect to a securities futures contract (as defined in section
1234B), to buy or sell its stock (including treasury stock).

(b) Basis

For basis of property acquired by a corporation in certain exchanges for its stock, see section
362.

2000—Subsec. (a). Pub. L. 106–554inserted “, or with respect to a securities futures contract (as defined in section
1234B),” after “an option” in second sentence.

1984—Subsec. (a). Pub. L. 98–369inserted provision that no gain or loss shall be recognized by a corporation with respect to any lapse or acquisition of an option to buy or sell its stock (including treasury stock).

Effective Date of 2000 Amendment

Pub. L. 106–554, § 1(a)(7) [title IV, § 401(j)], Dec. 21, 2000, 114 Stat. 2763, 2763A–651, provided that: “The amendments made by this section [enacting section
1234B of this title and amending this section and sections
1091,
1092,
1223,
1233,
1234A,
1256 and
7701 of this title] shall take effect on the date of the enactment of this Act [Dec. 21, 2000].”

Effective Date of 1984 Amendment

Pub. L. 98–369, div. A, title I, § 57(b), July 18, 1984, 1984, 98 Stat. 574, provided that: “The amendment made by subsection (a) [amending this section] shall apply to options acquired or lapsed after the date of the enactment of this Act [July 18, 1984] in taxable years ending after such date.”

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